AOL's spinoff from Time Warner to shed 2,500 jobs

As Time Warner continues the process of spinning AOL off into a separate, independent company, AOL will lose a third of its workforce. The spinoff is expected to be completed on December 9. In filings with the Securities and Exchange commission earlier this month, Time Warner said the split will cost more than $200 million in restructuring charges.

Today, AOL has reportedly instituted a voluntary layoff program, asking for 2,500 employees to give up their jobs in exchange for severance packages. If this number cannot be reached, AOL will begin laying off people anyway. The soon-to-be spun off company is looking to reduce its operating expenses by $300 million.

AOL CEO Tim Armstrong will reportedly be giving up his 2009 bonus, which would have been more than $1.5 million.

"As a member of our team and the person who takes accountability for the results of the company, I am making the decision to forego my 2009 bonus," Armstrong wrote to employees. "That decision is a personal one and is not a sign for the future payout of the overall bonus plan for employees."